What does a combined single limit signify in an insurance policy?

A combined single limit in an insurance policy signifies the maximum coverage limit for all types of claims arising from a single occurrence. This means that the insured can receive a total payout up to this limit, regardless of how many different types of damages (such as bodily injury or property damage) are included in the claim.

For example, if an accident results in both medical expenses and property damage, the combined single limit would apply to the total of those claims, rather than separating them into capped amounts for bodily injury and for property damage. This simplifies the claims process and provides more flexibility in how the coverage can be used, as all claims from a single incident will draw from the same pot of coverage. This feature is valuable for policyholders as it can simplify settlement discussions and ensure adequate coverage for more complex claims involving multiple types of damages.